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U.S. energy bill keeps tax break for SUVs

November 23, 2010
A provision allowing small-business owners to deduct up to $100,000 from their taxable income for buying a luxury SUV survived congressional debate last week on a broad energy bill. Language eliminating the SUV loophole was inserted into the Senate's version of the bill, to balance $23.4 billion in tax breaks for oil, natural gas, coal and other energy sources. But House negotiators reinstated the provision. The deduction of up to $100,000 from taxable income dramatically cuts the price of SUVs for small business owners. The loophole was part of the $350 billion Bush tax cut enacted in May and applied to the purchase of a vehicle for business use weighing 6,000 pounds or more. Previously, the deduction limit was $25,000.